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Branson fights air alliance
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April 22, 1997: 9:33 p.m. ET
Congress reviews proposal between British Airways, American Airlines
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NEW YORK (CNNfn) - After attacking the planned alliance between British Airways and American Airlines with a series of newspaper ads, Virgin Atlantic Chairman Richard Branson has turned to a new venue: Congress.
Since February, British Airways ads have promised passengers a free domestic ticket if they don't think its "Club World" service to London is the best and can explain why in writing.
Virgin turned the tables Tuesday, writing a letter to British Airways that bad-mouthed "Club World" and touted its own "Upper Class" service. (QuickTime movie, 1.2 MB)
Then Branson landed before Congress Tuesday, arguing that a business alliance between BA and American would create a "preposterous" cartel.
"We've always had a pretty competitive and pretty ferocious battle with British Airways," Branson said. "It's lasted now about 14 years, and we're very pleased to have survived it."
Virgin Atlantic has a reputation for scrappy, renegade marketing tactics. Analysts say the media dogfight is all about landing high-flying customers.
Although business travelers and frequent flyers make up only a small part of the passenger market, the airlines continue fighting for the premium prices they often pay, Standard & Poor's airline analyst Philip Baggaley said.
British Airways responded that it is "flattered by the attention and the plagiarism [of Virgin's attack ad] ... but that its passenger loads prove its 'Club World' is best." 
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